VanEck Cuts CLO ETF Fee to 0.29%, Second Reduction in a Year
Event summary
- VanEck reduced the management fee for its CLO ETF (CLOI) from 0.36% to 0.29%, effective October 7, 2026.
- This is the second fee cut for CLOI in the past year.
- CLOI is actively managed by MetLife Investment Management and has outperformed its benchmark.
- VanEck manages approximately $246.4 billion in assets as of August 31, 2026.
The big picture
VanEck's fee reduction underscores its commitment to cost-efficient access to collateralized loan obligations (CLOs), reinforcing its leadership in the CLO ETF space. The move comes amid a challenging fixed income environment characterized by rising and volatile long-term bond yields and tight credit spreads. VanEck's actively managed CLO ETFs, sub-advised by MetLife Investment Management, offer investors risk-managed exposure to investment-grade CLO tranches, providing a differentiated source of yield and diversification benefits.
What we're watching
- Competitive Positioning
- Whether VanEck can sustain its leadership in the CLO ETF space through continued fee reductions and performance.
- Market Dynamics
- How the challenging fixed income environment will impact the demand for CLO ETFs.
- Investor Behavior
- The pace at which investors shift towards actively managed CLO ETFs for yield and diversification.